Business Reporter

Australians are working an average of 32 hours a week, the lowest in over 30 years, detailed labour force data released by the Bureau of Statistics yesterday show.

But what looks like a reinforcement of a stereotype that Australians are living the good life rather than working hard is instead a reflection of a longer trend away from full-time towards part-time work, more flexible working hours, and the increasing casualisation of the work force, economists say.

"We know that over the last 12 to 18 months, conditions have been very tough on the economy and activity has been sluggish, especially for the retail sector," said Commonwealth Securities economist Savanth Sebastian, who pulled the figures together.

Falling ... the average number of actual hours worked by employees in Australia. Photo: CommSec

"As a result, while businesses are planning for a future turnaround and holding on to key staff, they are trying to maintain a lower cost base and that means cutting hours back, even for some of those full-time workers."

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Slightly below average

Compared with other countries, the number of hours Australians work appear neither enviably low nor outrageously high, averaging 1693 a year in 2011, or 32.5 hours a week, according to data collected by the Organisation for Economic Co-operation and Development (OECD).

Average annual hours actually worked per worker ... data from the Organisation for Economic Co-operation and Development from 2011. Photo: OECD

The figures showed that Germans worked an average of just 27.2 hours a week, while Americans worked 34.4 hours per week.

In Greece, where unemployment is soaring, the workforce put in an average of 39.1 workers a week. The OECD average is 34.2 hours worked by employees per week for 2011.

More older workers

More seniors looking for work ... a higher participation rate among older workers. Photo: CommSec

A shifting workforce has also seen a record number of seniors in Australia's jobs market.

While the participation rate, the percentage of people either in work or looking for work, for the workforce hit five-year lows of 65.2 per cent by the end of last year, a record number of people aged above 65 - 12 per cent - are entering the job market, the Bureau of Statistics data showed.

The average participation rate for those above 60-years-old was also at a record-high of 53.4 per cent.

Going down ... this graph, from May 2012, shows how the decrease in the proportion of full-time workers in more recent years has led to a decrease in the average hours worked by all employed people. Photo: Australian Bureau of Statistics

"They won't be working full-time. They'll be working a lot of those casual hours, and I think that will be adding to the slide that we've been seeing in the average hours worked," Mr Sebastian said.

The participation rate has also been a key reason why the employment rate has not risen sharply in the past year despite growing evidence of a softening economy as investment in the mining sector peaks, JPMorgan economist Tom Kennedy said.

"The participation rate is currently at 65.2 per cent. If that was up near pre-crisis highs of 65.5 or 65.6 per cent, that jobless rate would be a lot higher, maybe 5.7 or 5.8 per cent," Mr Kennedy said.

Rising jobless rate

A further shift towards part-time work was also expected as growth slows, consumer income and domestic spending falls and businesses shy away from increasing their headcount, he said, adding that it was not clear which industries would be able to compensate from the expected weakening of the mining sector.

"The key trend we are looking at over the next few months is a rising jobless rate. So the low at 5.2 per cent that we had the month prior to this one we estimate will get to about 6 per cent by December this year."

Earlier this month, the National Australia Bank tipped the unemployment rate to rise to about 5.75 per cent later this year.

ANZ said it also expected the unemployment rate to rise to about 5.75 per cent by mid to late 2013.

72 comments

Very interesting figures. I think that something needs to happen with employment in Australia. We need to push away from casualisation of Labor as this is having a huge impact socially on things like the ability to be able to purchase property.

Commenter

Daniel

Location

Sydney

Date and time

January 25, 2013, 12:39PM

It's prices that are the barrier. If they are unaffordable, they need to come down. Rents (return on investment) being a true reflection of real market forces are what will eventually drive property prices. We earn ten times our competitors and work a fraction the hours. Completely and utterly unsustainable.

Commenter

JohnB

Date and time

January 25, 2013, 1:05PM

It is definitely reflective of a trend towards casualisation but how that could be attributed to this Labor government I cannot see. If anything it would be more linked to policies like Work Choices.

Commenter

Alex

Location

Sydney

Date and time

January 25, 2013, 1:15PM

May be the casualisation of Labor is the solution ... send this government packing and look for folks who strike a better balance between employees and employers and give an incentive for the latter to hire staff on a more substantial basis.

Commenter

Peta 51

Date and time

January 25, 2013, 1:20PM

Very true. Casualisation of the workforce is coming thick and fast. I lost my job, and unable to find another job similar, I am now working less hours on a casual basis, and my hourly rate is half of what I used to earn. Who said wages are rising? My wage has been cut in half!?!

I'd like to thank the Government of Australia for not working in our interests, but in the interests in these mammoth corporates who have shifted many jobs overseas. I cannot understand how they can allow this? Are we not getting less tax dollars due to less people earning enough money? I don't envy the future of this nation at all. How can anyone afford the basics these days on such lower salaries or being in a casual workplace?

I wonder how many underemployed people there are? The numbers are growing, which is a worry for the economy.

Commenter

JJ

Location

Sydney

Date and time

January 25, 2013, 1:20PM

As a small business we have no choice but to keep our workers on contract. The main reason for this is the exorbitant and ever increasing rent we have to pay to stay in business. If it keeps growing at the rate it has been we will be losing so much money to rent in about 5 or 6 years that we will either have to downscale to the front room of a house or shut up shop altogether. We have just taken one worker off a regular, albeit casual wage since our last rent increase. I might add in reference to Luke's response below that my business partner and I work exceptionally LONG hours to compensate for this - well over 70 hours/week. Frankly I would rather be hiring a couple of people to field some of this, but we just don't have the profitability to do it. I don't know whether we would be flagged as 'labour force' in this particularly survey because we own and manage the business. I suspect, from a few professionals I know, that there are also a number of people doing way more work than is healthy that could, in an ideal world, be sharing some of those hours around, but similar obstacles stand in the way for their employers. Often they are not paid overtime, so it doesn't make more sense to hire extra hands if you can get existing employees to work an extra 10 or 20 hours a week at no extra expense. Not great, but that's what is happening to Australia's job market thanks to inflation over the last decade or so.

Commenter

Marie

Location

Sydney

Date and time

January 25, 2013, 1:47PM

@Alex

It is the continued sale of Australia and continuing to populate that's the problem. Yes LNP did it but Labor are doing it in record amounts. Either way, what we're earning is utterly unsustainable and therefore the entire economy will come down.

Commenter

JohnB

Date and time

January 25, 2013, 2:16PM

Daniel I wouldn't agree it's a problem created by Labor but there has been little to assist business in Australia since they have been in government.

Rather than creating an asset write off which most small & medium businesses don't need they should be providing ways to be able reduce or offset the cost of renting a shop front for lets just say companies with less than 30 employee's. That should give these smaller companies the confidence in turn to employ people on a permanent rather than casual basis.

Commenter

El Seano

Date and time

January 25, 2013, 2:18PM

I don't think you can politically prevent the casualisation of the workforce as this would seem a legitimate tool for business to lower their cost base. I agree the impact socially is really starting to hit certain demographics, There has to be some political solutions perhaps base on concepts like public transport levies, increase medi- care, addressing soaring energy costs. There is certainly a shift happening from what people were used to in the past, retail seems to be one area that is struggling to "adapt". people also need to re-examine their expectations with the shift in economic conditiond.

Commenter

Slogans for Bogans

Location

Brisbane

Date and time

January 25, 2013, 2:23PM

This actually all looks quite healthy..and debunks those silly news stories that come out like clockwork saying how hard Australians work compared to the rest of the world. People crave flexibility in the workplace and value time off more than money.